What technology has allowed the three major shipping companies in Korea to fight for three years?

The focus of Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding, the three major Korean shipbuilding companies, is the technical patent for the reliquefaction system (PRS) used on LNG carriers. It is reported that this technology patent lawsuit has been stalemate for three years because of the three companies' respective words. Recently, the three parties have filed a lawsuit in the South Korean Grand Court, waiting for the final ruling.
 
The core of the dispute dispute involves two patent technologies related to LNG ship PRS launched by Daewoo Shipbuilding.

Both Hyundai Heavy Industries and Samsung Heavy Industries, which have similar technologies, believe that the two technologies that Daewoo Shipbuilding Marine has registered and patented are no different from the existing technologies, so these two technical patents are invalid. The two companies pointed out that in the shipbuilding industry, some reliquefaction technologies have achieved "universalization", and Daewoo Shipbuilding Marine has pre-registered technical patents, and has taken a strong propaganda campaign against shipowners, saying that the LNG ship will be partially natural. The natural gas reliquefaction technology is its unique innovative technology, which not only makes the order competition for the “selling point”, but also has a direct impact on the operation orders of other shipping companies, and believes that others should use the technology. Payment technology patent royalties, for which Hyundai Heavy Industries and Samsung Heavy Industries must not agree. As a result, the two companies filed a lawsuit against Daewoo Shipbuilding Ocean three years ago.

Whether the technology patent is valid or not, the court trial results have also swayed. In the first instance, the Korean Patent Examination Institute reviewed and declared that the two technical patents of Daewoo Shipbuilding and Marine were valid; after that, Hyundai Heavy Industries and Samsung Heavy Industries filed a protest against the Korean Patent Court, and the patent court second verdict declared that the two technical patents of Daewoo Shipbuilding Marine were invalid. . Daewoo Shipbuilding Marine did not accept the second-instance judgment. It was reported to the Korean Grand Court in late January this year and is awaiting the final decision of the Grand Court.

Daewoo Shipbuilding Marine argued in the lawsuit of the Court of Appeal that the existing PRS is a technology for reliquefaction in the form of a nitrogen refrigerant cycle, and that Daewoo Shipbuilding Marine has developed a PRS that replaces this technology, which is an innovation. It is an epoch-making technology to reduce the natural gasification loss of LNG. With the PRS technology, the natural gas that LNG is naturally vaporized can be reliquefied and sent to the storage tank for storage, which is used as fuel for the ship machine. Therefore, no gasification loss occurs during the shipping process; The energy consumed is reduced by 25% to 80% compared to existing technologies. As a result, after an LNG ship is installed with PRS, the average operating cost can be saved by 3 billion to 4 billion won (about 2.5 million to 3.3 million US dollars), which naturally wins the favor of ship owners. It is reported that in 2014, the global ship market LNG ship orders totaled 60, of which Daewoo Shipbuilding Ocean took over 35 ships. Daewoo Shipbuilding Marine also stressed in the appeal that the LNG-fueled ME-GI engine developed by the company for LNG ships was specially developed in cooperation with Daewoo Shipbuilding Marine. The supporting PRS was developed by Daewoo Shipbuilding Marine. It can be said that PRS is specially developed by Daewoo Shipbuilding Ocean for this type of engine.

Relevant people in the industry believe that whether the patent of PRS technology of Daewoo Shipbuilding Ocean is effective, and the disputed parties have their own words and do not give each other, and each makes sense. The final result can only be judged by the judgment of the Korean Grand Court.

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